European Parliament Library

Paraguay :, Selected Issues

Abstract
This Selected Issues paper analyses Paraguay’s effective interest spreads using various methodologies. Interest rate spreads in Paraguay continue to be some of the highest in Latin America. A series of bank crises in the late 1990s and early 2000s weakened the financial system and pushed up spreads. The analysis suggests that operational costs, rising profits, and the need to cover credit and liquidity risks are the main factors behind Paraguay’s effective spreads. Improving data quality and mechanisms for sharing credit information could contribute to reduced spreads. Although the empirical results suggested that banking concentration has not given rise to greater spreads, adding new banking entrants may lower margins by increasing competition within the sector
Table Of Contents
Cover; CONTENTS; EFFECTIVE BANKING SECTOR SPREADS IN PARAGUAY; A. Introduction; B. Background and Stylized Facts; BOX; 1. Financial Sector Regulatory Reforms Since 2003; TABLES; 1. Quality of Legal Framework and Credit Information, 2006 and 2012; C. Interest Rate Decompositions; 2. Interest Rate Spread Decompositions: Total Banking System; D. Financial Statement Analysis; 3. Financial Statement Analysis of the Banking System; E. Interest Rate Regressions; 4. Interest Spread Regressions; F. Conclusions; FIGURES; 1. Banking Sector Indicators, 2012
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (34 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781484310359

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